Could Webull Stock’s Cash Flow Spark the Next Rally?
We think Webull (BULL) stock is worth a look: It is growing, producing cash, and available at a significant valuation discount. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market.
What Is Happening With BULL
BULL stock is available at a significant discount to its 3-month, 1-year, and 2-year highs. This can be attributed to increased regulatory scrutiny on payment for order flow models and intensified competition across the online brokerage sector. Broader investor caution towards growth-focused fintech companies also influenced recent market sentiment.
The stock may not reflect it yet, but here is what’s going well for the company: Webull’s global user acquisition continues its strong momentum, expanding into new international markets. Product diversification, including enhanced options and crypto, broadens its client base, boosting trading volumes. Despite revenue headwinds from late 2025’s lower interest rates, robust customer asset growth (up 84% in Q3 2025) and efficient operations ensure solid cash generation. It maintains a low debt-to-equity ratio of 10%, reflecting strong financial discipline and ongoing platform innovation, such as the Level2 partnership for automated strategies.
BULL Has Strong Fundamentals
- Cash Yield: Webull offers an impressive cash flow yield of 0.0%.
- Growing: Revenue growth of 41.8% over the last twelve months means that the cash pile is going to grow.
- Valuation Discount: BULL stock is currently trading at 33% below its 3-month high, 88% below its 1-year high, and 88% below its 2-year high.
Below is a quick comparison of BULL fundamentals with S&P medians.
| BULL | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| Free Cash Flow Yield | � | 3.9% |
| Revenue Growth LTM | 41.8% | 6.4% |
| Operating Margin LTM | 10.9% | 18.8% |
| PS Ratio | 7.4 | 3.4 |
| PE Ratio | 117.2 | 24.5 |
| Discount vs 3-Month High | -32.8% | -3.7% |
| Discount vs 1-Year High | -87.6% | -7.9% |
| Discount vs 2-Year High | -87.6% | -10.7% |
*LTM: Last Twelve Months
But What About The Risk Involved?
While BULL stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. BULL took a hit of 68% in the Dot-Com crash, 65% during the Global Financial Crisis, and 58% in the 2022 inflation selloff. Even the less severe downturns — like 2018 and the Covid pullback — triggered drops north of 20%. The stock shows resilience, but history tells us sharp slides can’t be ruled out, no matter how strong the fundamentals look.
Other Stocks Like BULL
Not ready to act on BULL? You could consider these alternatives:
We chose these stocks using the following criteria:
- Greater than $2 Bil in market cap
- Positive revenue growth
- High free cash flow yield
- Meaningful discount to 3M, 1Y, and 2Y highs
A portfolio that was built starting 12/31/2016 with stocks that fulfill the criteria above would have performed as follows:
- Average 6-month and 12-month forward returns of 25.7% and 57.9% respectively
- Win rate (percentage of picks returning positive) of >70% for both 6-month and 12-month periods
A Multi Asset Portfolio Gives You Safer Smarter Growth
Individual stocks can soar or tank but multi asset exposure steadies the ride. A spread out portfolio captures upside while limiting the damage from any one market.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices